All Forum Posts by: Michael Porche

@Salvatore D'Agostino Totally relate to how hard this decision may be. I don’t have any personal experience with this but I do know there are many factors that play a part in this decision. Here are some articles that i’ve read in the past, and keep in my back pocket for when the time does come.

https://www.biggerpockets.com/blog/signs-when-to-sell-investment-property
https://www.homego.com/blog/when-to-sell-rental-property/

Really depends on the market but I have seen some declining trends in some areas and steady trends elsewhere as well. What brings you to ask?

Hey @Christopher Cockrille! Great Question! This is a great question. If your margins are that thin as is I personally wouldn't go for that as a deal unless I knew I could double the revenue in that scenario at best.If its something you are debating on... I would ask yourself... what makes you think you can produce another 4k-10k of revenue over what they are doing now? If they are already producing at that level then likely you'll be producing at that level as well. However if you have a plan in place where you can ensure you can increase the revenue with better marketing, more services or overall adding value then yes of course you can make more. I would look at the opportunity closely but if 26k is at best then thats very low to work with

Hey @Ruben Ramirez!

Getting a DSCR loan is actually pretty easy. However, those are just 1 of many different asset-based loans out there. It's good to talk to a lot of lenders out there before settling.

1. 1. What is your question here?
2. 2. It depends on what loan type and on the lender. But be prepared to show everything. However, if you talk to enough lenders, you'll realize that different lenders have different qualifications
3. 3. I'm not sure what this means either... but the quick answer is no. I have found a lender for any situation. You just need to actually call people and ask for referrals nonstop

Hey @Jaime Cleveland Great question. Seabrook happens to be one of those interesting phenomenon in regards to that location because it was essentially one guy came in and started developing it and leveraged really beautiful natural elements of it. I think it's still so new that you can be part of the hype and get a lot of growth in part of that. I just don't know where that stops or where that ceiling stops, but because it's still so new, there's probably going to be a lot of money moving into that area as a new vacation spot. 

So chances of you buying there and doing well are probably in the positive. However, you really need to map out what returns that currently people really are getting there and what do those include? So whether it's appreciation what does that look like? It's cash flow what does that look like? Because both of those are affected by different metrics which you need to essentially measure each one individually before you can really come up with a good decision. 

I hope that helps.

@Michael Ebeling, great job on finding a deal that you like. In regards to specifically fixing the insurance issue. One thing I see a lot of people do now I'm not recommending it, but I do see a lot of people do is they take off the slide and the diving board first, they get it insured and they put it back on. Now the problem with that is if someone happened to go on the diving board and go on the slide and they hurt themselves, well then you're not covered. And that could also mean you're not covered for quite a few other things too. What I would recommend is I would look for other insurance carriers because I have seen a lot of other insurance carriers who have insured those items specifically in the rental. How many insurance carriers have you actually called and talked with about this?

hey @Pablo Weber, a pleasure to be acquainted. So, it really comes down to what your goal is. I would rather be in a position where I'm putting less down on my own cash on anything, especially if I know I can make greater returns than what the interest rate actually is. So for example, if your interest rate is 6% or 7%, then I'm going to try and put as less down as I possibly can because I know in my other investments with that same amount of money, I can make way more than 6% on my money. Then the other thing I would consider is if you're looking to just not have to pay as much down, I mean, putting more down is really not going to change your monthly payment as much as you think in comparison to what you could be making in your other investments. 

Now if you're on these forums like most people, which is essentially to gain financial freedom or financial independence, then yes, that would be great to buy a home in San Diego at over a million dollars for the sake of appreciation, but not so much for cash flow. So if your end goal is cash flow, I would reconsider. If your goal is appreciation, then it would work really well. Ultimately. What are you trying to accomplish?

Ouch, yeah first I would not assume interest rates are going to go down. That is never a good investment strategy. As of right now they are projected to go up again. Will they likely to eventually go down? Yes of course. But that in of itself is not a good strategy to invest on. Also I would normally go with less down option even if it means cashflow vs no cashflow.I always ask this, if you feel you can't make a larger return than 8% (current interest rates) with your $13,000 in cash then I would stick it in the property. but if you feel you can make more than 8% on that then I would stick it where you can make more than 8% on your money.

Hey @Amanda Copeland! It seems you're in a bit of a pickle. There is a few ways to look at this. But I don't think you should just ditch the property. Especially if it can make you a solid return. If you ended up putting more into the rehab than anticipated its not the end of the world. This is more common than not. If you are cash flowing and lessening your living expenses overall then you are in a good place!! I would also consider the appreciation you will be gaining and I would look to measure that asap. In regards to mid term rental, you would have to look at occupation sites and see what a mid term rental is going for in your area. Similar with STR's, you will want to go on airdna and see what you could get for it there. Of course both of those cases typically means you will have to furnish the apartment, and get a cleaner involved if not for you. I would also recommend if you rent it out as a long term rental, you may want to separate yourself as "owner" to your tenant. I have seen people taken advantage of at times because they know they are the owner of the home and ultimately the main decision maker... just my two cent